Boeing announces purchase of Spirit AeroSystems for $4.7 billion in stock

ARLINGTON, Va. — Boeing announced plans to acquire Spirit AeroSystems for $4.7 billion in an all-stock transaction for the manufacturing company, which was already part of the company’s manufacturing chain aerospace.

Boeing, based in Arlington, Virginia, announced the purchase in a statement released Sunday evening.

The $4.7 billion acquisition value represents $37.25 per share, while the total transaction value is approximately $8.3 billion, which includes Spirit’s most recently reported net debt, the aerospace company said.

Spirit, based in Wichita, Kansas, makes critical parts for Boeing aircraft. Spirit also announced the acquisition on its website and social media.

“We believe this agreement is in the best interests of the traveling public, our airline customers, Spirit and Boeing employees, our shareholders and the country as a whole,” said Boeing Chairman and CEO, Dave Calhoun, in the press release.

Boeing previously owned Spirit, and the aerospace company said bringing the supplier back into the Boeing fold would improve the quality and safety of the planes, which have come under increasing scrutiny from regulators, Congress and airlines.

“By reintegrating Spirit, we can fully align our commercial production systems, including our safety and quality management systems, and our workforce with the same priorities, incentives and results, focused on safety and quality,” Calhoun said.

Buying Spirit would reverse a long-standing Boeing strategy of outsourcing key work on its jetliners. This approach has been criticized as problems at Spirit have disrupted production and delivery of Boeing’s popular jetliners, including the 737 and 787.

Concerns about safety came to a head after a panel on an Alaska 737 Max 9 exploded Jan. 5 16,000 feet (4,876 meters) above Oregon. Shortly after, the Federal Aviation Administration announced increased monitoring of Boeing and Spirit.

The Justice Department said in a court filing in May that Boeing violated the terms of a 2021 settlement allowing the company to avoid prosecution for actions leading to two fatal crashes involving the jetliners 737 Max from the company more than five years ago.

The Justice Department is pushing Boeing to plead guilty to criminal fraud in connection with two fatal plane crashes involving its 737 Max jetliners, according to several people who heard federal prosecutors detail a proposed bid Sunday.

Boeing has until the end of the week to accept or reject the offer, which requires the aerospace giant to agree to have an independent monitor oversee its compliance with anti-fraud laws, they said.